By Connor Hart
Caterpillar is scheduled to report fourth-quarter results before the market opens Thursday. Here is what you need to know.
NET INCOME: The maker of mining and construction machinery is projected to post a profit of $2.11 billion, down from $2.79 billion in the year-ago quarter, according to analysts polled by FactSet.
ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are forecast to come in at $4.71 a share. That compares with adjusted earnings of $5.14 a share a year earlier.
REVENUE: Overall revenue is expected to be $17.85 billion, up from $16.22 billion in the year-ago quarter.
Shares have gained 10% over the past three months and were recently trading hands at $644.08.
WHAT TO WATCH
--Investors will be looking to see whether the company's engine business continued its bull run in the latest quarter. Caterpillar's engine business drove the equipment maker's results in the third quarter. A 31% increase in sales of power generators, mostly to AI data-center developers, pushed up engine-segment sales and profit by 17% from a year earlier. The increase also prompted the company to expand production of generators with a $725 million addition to its Lafayette, Ind., plant.
--As AI data centers' need for power fueled sales, Caterpillar leaned further into artificial intelligence. The company earlier this month unveiled a new AI assistant and expanded its Nvidia partnership. It also previewed five autonomous machines designed for construction settings, branching out from its use of autonomous machinery in mining equipment. Investors will be looking for updates to Caterpillar's AI strategy, as well as new technological developments.
--Caterpillar last quarter raised its expected tariff expense for 2025 to a range of $1.6 billion to $1.75 billion, from $1.3 billion to $1.5 billion previously. Tariff expenses drove production costs higher during the third quarter, and investors will be looking to see whether the company was able to mitigate some of these costs, and if tariffs are expected to once again impede earnings in the coming year.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
January 28, 2026 15:57 ET (20:57 GMT)
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